After analysing the financial statements, answer the following questions:

1. Calculate the gross margin and express as a percentage. Include your calculations in your answer.

Hint: Use the Profit and loss statement (Appendix D) to help you with this question.

2. Calculate the profit margin and express as a percentage. Include your calculations in your answer.

Hint: Use the Profit and loss statement (Appendix D) to help you with this question.

3.Calculate the debt ratio.

Hint: Use the balance sheet (Appendix E) to help you with this question.

4.Using the cash flow statement (Appendix F), describe your observations on the cash flow of the business.